Enacts the "corporate and financial accountability act" to provide for accountability for recipients of publicly funded economic development assistance.
STATE OF NEW YORK
________________________________________________________________________
6793
2019-2020 Regular Sessions
IN ASSEMBLY
March 20, 2019
___________
Introduced by M. of A. ORTIZ -- read once and referred to the Committee
on Economic Development
AN ACT to amend the economic development law, in relation to enacting
the "corporate and financial accountability act"
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "corporate and financial accountability act".
3 § 2. The economic development law is amended by adding a new article
4 4-D to read as follows:
5 ARTICLE 4-D
6 FINANCIAL INCENTIVES ACCOUNTABILITY
7 Section 147. Legislative declaration.
8 148. Definitions.
9 149. Financial incentives accountability.
10 § 147. Legislative declaration. The legislature seeks to ensure that
11 recipients of publicly funded economic development assistance are held
12 accountable for the attainment of agreed upon performance objectives,
13 through a requirement for the repayment of assistance if such objectives
14 are not met.
15 § 148. Definitions. For the purposes of this article, the following
16 terms shall have the following meanings as indicated:
17 1. "Agency" shall mean any agency, department, board, bureau, commis-
18 sion a majority of whose members are appointed by the governor, divi-
19 sion, office, council, committee, or officer of the state, or the state
20 university of New York or the city university of New York, or any public
21 benefit corporation or public authority, a majority of whose members are
22 appointed by the governor, the state, any of its political subdivisions
23 or instrumentality of the state or its political subdivisions, or any
24 public benefit corporation as defined in subdivision four of section
25 sixty-six of the general construction law, or any municipal corporation
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10055-01-9
A. 6793 2
1 as defined in subdivision three of section three-a of the general munic-
2 ipal law.
3 2. "Economic development contract" shall mean any contract, agreement
4 or understanding between an agency and a recipient, providing for
5 awards, grants, loans, tax abatements or other business incentives.
6 3. "Recipient" shall mean a person, firm, partnership, company, asso-
7 ciation or corporation which enters into an economic development
8 contract with an agency.
9 4. "Applicant" shall mean any entity filing any application with an
10 agency to become a recipient.
11 5. "Award" shall mean any award, grant of financial assistance, loan,
12 tax abatement or other business incentive.
13 § 149. Financial incentives accountability. 1. Every agency that
14 enters into economic development contracts shall establish and implement
15 a financial accountability policy which shall at minimum require:
16 a. applicants to file information with an agency during the applica-
17 tion process for qualification as a recipient of an economic development
18 contract which shall include such applicant's record of performance in
19 contributing to job retention and creation, economic stability and
20 community revitalization, and any criminal convictions, violations or
21 pending investigations regarding occupational safety and health stand-
22 ards, equal employment opportunity credits and environmental standards;
23 b. the repayment, with interest, of awards or a portion thereof, upon
24 a finding that the recipient has not fully executed and completed the
25 stated purpose or objective of the award. Upon a written finding that
26 the repayment of the award is unable to be fulfilled due to circum-
27 stances beyond the control of the recipient, the award may be excused,
28 in whole or in part, by the agency; and
29 c. in the event that a recipient fails to repay an award and is found
30 to have been subject to a previous repayment pursuant to this article,
31 such applicant shall be ineligible to receive an award from the agency
32 for not less than five years following the date of last repayment.
33 2. Each agency that enters into economic development contracts shall
34 file with the department a certified copy of their financial account-
35 ability policy promulgated pursuant to this article.
36 3. In the event that a recipient fails to repay an award the agency
37 shall inform the department which shall maintain a listing thereof. The
38 department shall then make an annual report to the speaker of the assem-
39 bly and the temporary president of the senate on the first day of March
40 with respect to all recipients, to date, that have failed to repay an
41 award.
42 4. Every agency which enters into economic development contracts
43 shall, in the course of implementing the policy promulgated pursuant to
44 this article, report any information regarding a recipient's record of
45 performance in contributing to job retention and creation, economic
46 stability and community revitalization, and any criminal convictions,
47 violations or pending investigations regarding safety and health stand-
48 ards, equal opportunity employment credits and environmental standards
49 to the appropriate department for assessment and review.
50 § 3. This act shall take effect on the one hundred twentieth day after
51 it shall have become a law. Effective immediately, the addition, amend-
52 ment and/or repeal of any rule or regulation necessary for the implemen-
53 tation of this act on its effective date are authorized and directed to
54 be made and completed on or before such effective date.